To say that it was a nasty day would be an understatement. If one looks at the daily charts then they see that the market fell a bit, which is normal and expected in a bear market, but when we look at the tape action in the last hour, we can see that a nasty selloff took place. I could not find any reason for the action. It could have been triggered by algorithms and it took some time to put out the fire.
To collect more premiums, I rolled down some of my call position and sat tight on my put positions. I have a few positions expiring next week so hopefully we will see a small rally or at least a sideways action over the coming weeks.
So what's my trade for today?
#OXY (#OccidentalPetroleum). The stock is near its all time high so I decided to give it a try with a call option well above the current price. I am hoping to close it before the earnings on Nov 8.
The stats
Trade Type: Short Call
Strike: $77.5
Expiry: 18 Nov
Delta: -18
IV Rank: 33.5
Premium: $1.04
Cap Req: $644
Annualised Prof at Expiry: 155%
IMPORTANT: Studying previous trades provide the opportunity to everyone to learn a great deal so I encourage you to click on the links below and digest the info.
Closed:
None.
Rolled:
https://www.tycoonitos.com/community/market-comments/market-comments-20220915
https://www.tycoonitos.com/community/market-comments/market-comments-20220524
https://www.tycoonitos.com/community/market-comments/market-comments-20220421
https://www.tycoonitos.com/community/market-comments/market-comments-20220520
Let me know what you think.
Nice winner!
Had to wait a bit with this one but eventually it worked out.
Closed at $0.19 for an annualised profit of 166%.